The following statement is being issued by Kroll Settlement Administration regarding a settlement that has been reached in Eric L. Frank v. City of Pensacola, Case No. 2015 CA 001298 (the “Lawsuit”) and approved by the Circuit Court in and for Escambia County, Florida.
What is this lawsuit about? The Lawsuit alleges City of Pensacola (“City”) improperly charged franchise fees to its natural gas customers located inside the Pensacola city limits. There were two general grounds for the lawsuit. First, that City staff was not authorized to pass the Franchise Fees to, or require them to be paid by, the Customers. Rather, the Franchise Fees were to be charged to and collected from only the City's gas utility department. Second, that the Franchise Fees were not valid municipal user fees; rather, they are impermissible taxes charged in violation of the Tax Preemption Doctrine of the Florida Constitution.
Further, the City levied a Utility Service Tax on the Franchise Fees and, because the Franchise Fee charges are improper, Customers' payments of Utility Service Taxes on those Franchise Fees were also improper and must be returned to the Customers.
A Final Judgement was entered in the Lawsuit which (i) enjoined the City continuing to charge and collect Franchise Fees from the Customers, and (ii) approved a settlement which provides for return to the Customers of the Franchise Fees which the City billed them.
What does the settlement provide? The settlement provides for $12,600,000.00 to make payments to existing and former customers. Class Members who are currently natural gas customers of the City (“Existing Customers”) will automatically be mailed checks for their entitlement amounts and will not need to do anything to receive their payments. Class Members who are no longer natural gas customers of the City (“Former Customers”) will have to submit a claim. Valid claims from Former Customers will be paid promptly once the Settlement Administrator has verified the claim.
Former Customers must complete and submit a Claim Form and provide the required documentation online or by mail postmarked no later than one year from the Administrator's completion of the initial Notification Process. Please visit www.PensacolaNaturalGasClassActionSettlement.com to learn more about the settlement benefits and to file a claim form.
The Final Judgement confirmed that in exchange for the settlement payments, the Class Members have released the City from further claims relating to the general subject matter of the Lawsuit. The release is described in the Settlement Agreement, available at www.PensacolaNaturalGasClassActionSettlement.com.
What happens if I do nothing?
— Existing Customers (with the exception of the City): If you do nothing, you will automatically receive payment.
— Former Customers: If you do nothing, you will not receive any settlement benefits from this settlement.
You will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendant or the other Released Persons based on any claim that could have been or that was brought relating to the Lawsuit.
This is only a summary. For detailed information, including the Settlement Agreement and other important documents, visit www.PensacolaNaturalGasClassActionSettlement.com, call (833) 890-3973, or write to Frank v. City of Pensacola, c/o Kroll Settlement Administration, PO Box 225391, New York, NY 10150-5391.
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SOURCE Kroll Settlement Administration
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